I have couple of questions regarding the cowabunga system,i have read thru how the system works but am pretty new to charts.Here goes i have established that as of 8/19/09 the trend for gbp/usd is down , the carting pacage i use is accucharts & it has 2 categories for ema 1 being exponential ohmc, how is this different to the regular ema and which should i use when applying it to the cowabunga system?
Also when i go to set the 5 & 10 there are 2 spots to change one says 1 says period the other shift, and next to it says value do i change them both to 5 & 10 or just 1 of them?
Also on the rsi it says in the cowabunga system to change it to 9 but again there are 3 boxes that i can change 1 says period, 1 says upper level & the last one says lower level, do i change all 3 to 9 or just one of them.
Lastly (for today anyway) i watched the video that was presented with the cowabunga system and he was saying that when certain news avents are about to take place it is best to close the trade, how long after the news event can i begin to trade the pair again.
I appreciate any help you can give me.Thank you so much.
TREX - hopefully some answers to your questions : -
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2 types of EMA -
I assume you meant OHLC rather than ‘ohmc’, in which case I belive that this enables you to choose any one of either the Open, High, Low or Close to plot your ema, where as the other I assume is simply close price by default. -
2 spots on ema
the 1st will be the period e.g. 5 bars, the second (shift) allows you to ‘shift’ the ema x bars to the left or right of the bar to which the calculation applies - best bet is to give it a try and see for yourself how the ema indicator moves on your chart. Try leaving as 0 1st whilst you get used to charting -
3 spots on RSI
the 1st will agian be the period that you wish to use, the latter 2 are horizontal bars that will appear on the chart denoting overbought & oversold positions. These would normally be set at either 20 & 80, 30&70 or 32 & 68 - again code one of the pairs of numbers in the chart and see the results for your self.
Probably not the best of descriptions, but hopefully a start for you.
Paul.